Advertisements
Advertisements
प्रश्न
Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.
उत्तर
(a) A decline in the own price of Good X shows a positive relationship with the supply of good. When the price declines from P1 to P2, there will be contraction of supply from Q1 to Q2. Hence, the supply curve will move downwards.
(b) Assuming other things remain constant, the levy of a tax on Good X shows a negative relationship with the supply of a good. When there is a tax on a good, the cost of production increases and decreases the profit of the producer. Hence, it leads to a decrease in the supply of a good which shifts the supply curve towards the left, i.e. S2S2 to S1S1.
APPEARS IN
संबंधित प्रश्न
Explain the distinction between “change in quantity supplied’ and “change in supply”. Use diagram.
When does 'decrease' in supply take place?
Explain how technological progress is a determinant of supply of a good by a firm.
Distinguish between the following.
Percentage method of measuring the elasticity of supply and Geometric method of measuring the elasticity of supply.
What is meant by ‘increase’ in supply?
What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.
Write short answer for the following question :
Explain the increase in supply and decrease in supply.
Give reasons or explain the following statements
The relationship between price and supply is positive.
Answer with reasons whether you agree or disagree with the following statement:
The supply curve slopes downward from left to right.
State whether the following statement is TRUE and FALSE.
Stock is the source of supply.
State whether the following statement is TRUE and FALSE.
Supply is indirectly related to price.
Give reason or explain:
Supply is directly related to price.
Write short note on the following:
Market supply schedule.
Write short note on the following:
Change in supply.
Write short note on the following:
Labour supply curve.
Do you agree or disagree with the following statement? Give reason.
The backward slopping supply curve shown as inverse relationship between supply of labour and wage rate.
State with reason whether you 'agree' or 'disagree' with the following statement.
Supply depends on several factors.
